Christian Perspective Ecclesiastes 5:10 Whoever _____ _______ never has ______ enough; whoever _____ ________ is never satisfied with his income. This too is meaningless. Hebrews 13:5 Keep your lives free from the _____ ___ _______ and be content with what you have… I Timothy 6:10 For the ____ __ ______ is a root of all kinds of evil. Christian Perspective I Corinthians 16:2 (Paul speaking) On the first day of each week, each one of you should ____ ______ a sum of money in keeping with his income, _______ ___ ___ , … Proverbs 13:11 Dishonest money dwindles away, but he who _______ _______ ________ by _______ makes it grow. Proverbs 13:22 A good man _______ ___ ______________ for his children's children, … 401K, 403B, 457, SEP Retirement Plans Company sponsored retirement savings plans (supported by multiple types of mutual funds) – 401K offered by ____________________ companies – 403B offered by ____________________ companies – 457 offered by _______________ _____________ – SEP available for ______________ _____________ In many cases, these retirement savings plans are __________ company sponsored _________ _______ 401K, 403B, 457, SEP Retirement Plans (cont’d) Maximum contribution is ________ % of earned income subject to a maximum amount per year Tax favored (advantaged) – Additions are made with ________________ dollars – All interest/dividends are _______ _____________ Most companies will match the first _______ % of each employee’s contribution All balances must be ________ _______ to an IRA when you leave a job (to avoid taxes and _______ tax penalties) Individual Retirement Accounts Traditional IRA – – – – – (very similar to a 401K or 403B plan) All new contributions are made with ______________ dollars All mutual funds gains are ________ _____________________ All future withdrawals are _____________ _______________ You must begin withdrawing money at age ____________ Main use: __________________________________________ Roth IRA – – – – (introduced in 1997) All new contributions are made with _________ _____ dollars All mutual fund gains are __________ _______________ All future withdrawals are __________ _______________ after age _______________ You do not have to begin withdrawing money at age _________ Retirement Savings Strategy Begin investing ____ % your first day at work – You will never ______ what you never ______ – You will not have to make tough __________ ______ Recommended Investment Strategy – First, invest in a ________ up to the matching pct – Second, invest in a ________ _________ up to the maximum amount allowed per year ($4,000 in 2005). – Third, go back and invest in your _________ up to the maximum amount allowed per year ($14,000 in 2005) Retirement Savings Example Your first job pays _____________ per year and you get a raise of ______________ per year thereafter You contribute _________ % each month (Payroll Deduction) Your employer matches the first _______ % contribution You contribute _______ % for ________ years (ages 22–67) Your final retirement “nest egg” will be: 401K + Roth IRA = Total $_________ + $__________ = $___________ ( 5% - pessimistic) $_________ + $__________ = $___________ ( 6% - conservative) $_________ + $__________ = $___________ ( 8% - avg last 30 yrs) $_________ + $__________ = $___________ (10% - optimistic) Summary Every person is eligible to invest in their future You will secure your financial future if you just follow one simple rule…. Invest 10% beginning day one of your career Don’t borrow from your 401K or Roth IRA! College is still the best option if you want: – More initial career options – Higher starting salary – More career advancement opportunities